Current Developments in the Taxation of Private Equity / Venture Capital Funds Financial Yearbook 2023

Regular readers of the annual issues of the FYB Financial Yearbook may still remember the introductory statements of our last articles in the FYB Financial Yearbook 2020: Πάντα ῥεῖ – Everything flows!” or “Little flows in the right direction!” (FYB Financial Yearbook 2022). The background at the time was the increased and intensified preoccupation of the fiscal authorities with the taxation of private equity funds or their limited partners subject to taxation in Germany and above all the frustration that the fiscal authorities simply negated several unambiguous and trend-setting rulings of Germany’s highest fiscal court, the Federal Fiscal Court (BFH – Bundesfinanzhof), despite knowing better, over many years. Recently, a first break out of this time loop has seemed possible. Have fiscal authorities (finally) recognised the necessity and usefulness of private equity and venture capital and “fallen in love” with this asset class? In the movie “Groundhog Day”, which we regularly quote, it was the love of Rita that finally freed Phil Connors from his groundhog day loop in Punxsutawney.